By Brazil Stock Guide – Brazil’s antitrust authority, Cade, has approved amendments to mobile network-sharing agreements between TIM S.A. (TIMP3) and Telefônica Brasil S.A. (VIVT3). The move allows the telecom giants to jointly use radio access network (RAN) infrastructure in towns with fewer than 30,000 residents, aiming to expand coverage and cut operational costs.
The decision, first reported by Estadão Conteúdo, follows months of scrutiny from market participants concerned about competition in the mobile sector after Oi’s exit.
Ademir Antonio Pereira Junior, a lawyer representing Neo, argued that “with Oi leaving the mobile market, competition is already declining, and rivalry is insufficient.” He warned that the cooperation could create “a grave dependence between the companies” and “a concrete effect of reduced quality and network capacity for users.”
Enrico Spini Romanielo, representing TIM, dismissed those concerns. “The RAN-sharing agreements not only do not harm competition but generate efficiencies for the market as a whole,” he said, emphasizing that the scope is limited to small municipalities.
For Telefônica Brasil, attorney Leonor Cordovil said network sharing is an established and internationally recommended practice. “There is no compromise to free competition,” she stated. “These are municipalities of very low economic attractiveness where duplicating infrastructure would not be viable.” Cordovil added that the arrangement “rationalizes infrastructure use while maintaining each company’s operational and commercial independence.”